On Tuesday, Google introduced a specialized device aimed at reducing its dependence on costly chip manufacturers and enhancing its competitiveness in the rapidly evolving AI market.
The newly unveiled device, named Axion, is envisioned to manage the extensive data utilized by Artificial software, as disclosed in Google’s presentation on Tuesday. It is structured to operate in clusters of hundreds of cards to enhance performance, as reported by the Wall Street Journal.
The innovative chips, serving as crucial control units (CPUs), reportedly offer a 30% enhancement compared to the previously available “general-purpose” chips utilizing similar circuitry developed by the UK-based semiconductor and software company Arm, according to a statement by Google. Despite prior endeavors to create distinct chips for different business sectors, this marks Google’s maiden venture into producing chips tailored to support AI within data centers.
Customers of the Alphabet company can anticipate accessing Axion later this year through Google’s cloud services, albeit not through direct sales, as per the Journal. Amin Vahdat, the company’s vice president overseeing customized cards, expressed a strategic shift in approach.
Vahdat remarked, “Being an exceptional technology enterprise differs significantly from excelling as a cloud provider or custodian of national data.”
By circumventing direct sales to customers, Google sidesteps direct rivalry with its longstanding associates and dominant chip producers, Intel and Nvidia. Vahdat emphasized that the company views its foray into the chip sector as a mutually beneficial development for all industry stakeholders.
In Vahdat’s words, “I view this as a platform for broadening the scope of opportunities.”
While Google’s competitors may not share the same perspective in the fiercely competitive race to empower AI, Intel, a semiconductor company based in Santa Clara, California, launched the AI-focused device Gaudi 3 on Tuesday. Intel anticipates making the new chips accessible by the third quarter, catering to the training needs of extensive language models like ChatGPT. Intel asserts that the Gaudi 3 cards hold a competitive edge over Nvidia’s counterpart, the H100.
Conversely, Nvidia revealed the latest iteration of its renowned H100 chip in November, set for release later this month. The news prompted Nvidia’s stock to surge by over 2% on Tuesday. Despite facing heightened competition, the company’s stock has surged by approximately 75% since the year’s commencement, buoyed by the robust demand for its potent H100 cards.
Following the announcement of the Axion device, Alphabet’s stock witnessed a spike of up to 2.4% before settling back. Ultimately, the stock concluded the day with a 1.28% increase, reaching around $158.
